House Passes Housing Bill Removing Build-to-Rent Sale Requirement

The House passed its version of the 21st Century ROAD to Housing Act on Wednesday by a 396-13 vote. The measure removes a Senate requirement that large investors sell off holdings of purpose-built single-family rental communities to individual owner-occupiers.

The bill continues to prohibit large investors from purchasing existing single-family homes and caps ownership at 350 such properties. It also removes several federal building-code restrictions on manufactured housing and creates an innovation fund to award grants to localities that ease zoning rules.

The Senate version would have forced divestiture of build-to-rent communities. " Rental housing economist Jay Parsons wrote that the remaining investor restrictions "still strongly favor wealthier homebuyers over less-wealthy renters" and rest on myths about large corporate ownership.

The legislation streamlines environmental reviews for federally funded housing projects and directs the Department of Housing and Urban Development to publish model zoning reforms. It drops the Build Now Act that would have redirected Community Development Block Grant funds based on new construction.

President Donald Trump has supported restrictions on large investors. The White House praised the House version while noting the investor limits. Sen. Elizabeth Warren and Sen. Tim Scott issued a joint statement that "still work to be done" remains on the bill.

The House has now passed its version twice with nearly 400 votes; the Senate passed its version 89-0. Differences over investor rules remain the main obstacle to final passage.